The Nigerian Senate has approved President Bola Tinubu’s proposed external borrowing plan spanning 2022 to 2024. The substantial sum of $7.4 billion and 100 million euros is earmarked for a diverse range of projects, drawing attention to the nation’s commitment to bolstering key sectors.
The Senate’s decision hinged on the comprehensive report presented by Senator Haruna Manu, the Vice Chairman of the Committee on Local and Foreign Debt. Notably, Sen. Manu acknowledged the valid concerns expressed by Nigerians regarding the nation’s borrowing practices over the past decade.
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Highlighting the fiscal landscape, Manu emphasized that the debt service figures have been a substantial burden, consuming over 30 percent of the nation’s annual budget.
The shortfall in annual revenue, coupled with the imperative for rapid infrastructural and human capital development, has compelled the National Assembly to pass deficit budgets annually, necessitating borrowing to bridge financial gaps.
The borrowing proposal, designed to be sourced from various financial institutions, is primarily allocated to ongoing projects in crucial ministries such as Education, Agriculture, and Women’s Affairs. Sen. Manu underscored the multiplier effect of these projects on economic growth, encompassing infrastructure development, job creation, poverty alleviation, and stimulation of commercial and engineering activities.
Importantly, the report revealed the World Bank’s commitment to providing funds aimed at enhancing electricity supply reliability, achieving financial and fiscal sustainability, improving accountability, and utilizing existing grid-connected capacity to deliver more power.
Beyond the financial discourse, the Senate swiftly endorsed the securitization of the remaining N7.3 trillion in the Consolidated Revenue Fund (CRF) of Nigeria. This move aligns with the commitment to fortify the nation’s fiscal standing.
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Simultaneously, the Senate confirmed key appointments for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The nominees, Bashir Indabawa, Kelechi Ofoegbu, Enorense Amadasu, and Babajide Fasina, will serve as Executive Commissioners, contributing their expertise to various facets of the commission’s operations.
The legislative session concluded with the Senate adjourning until January 23, marking a momentous session that addressed critical financial matters and strategic appointments pivotal to Nigeria’s economic trajectory.
